TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: OCTOBER 14, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FOR RECEIPT OF PROPOSITION C FUNDING AND APPROPRIATION OF FUNDS FOR THE ARROW HIGHWAY TRANSIT IMPROVEMENTS, C.I.P. 2025-01, FIRST STREET REHABILITATION, C.I.P. 2025-02, AND INDIAN HILL BOULEVARD AT I-10 IMPROVEMENT, C.I.P. 2025-03 (FUNDING SOURCE: PROPOSITION C FUNDS)
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SUMMARY
On September 9, 2025, the City Council authorized the City Manager to award and execute an agreement for the construction of the Arrow Highway Transit Improvements Project, First Street Rehabilitation Project, and Indian Hill Boulevard at I-10 Freeway Improvements Project, C.I.P 2025-01, C.I.P. 2025-02, and C.I.P. 2025-03, (the “Project”) respectively. The lowest responsive and responsible bidder was Hardy & Harper Inc. of Lake Forest with a bid of $995,000.
The Project includes the construction of a bus pad with adequate space to accommodate accessibility improvements and amenities on Arrow Highway, east of Indian Hill Boulevard, and a 2-inch asphalt grind and overlay for First Street between College Avenue and Claremont Boulevard, and for Indian Hill Boulevard under the I-10 Freeway.
Staff were recently informed by Los Angeles County Metropolitan Transportation Authority (LACMTA) that a request from June 2025 to convert unprogrammed Surface Transportation Program-Local (STP-L) funds to Proposition C funding has been approved. To complete the process, LACMTA requires the execution of a Fulfillment Agreement (Attachment) of Proposition C funds. The LACMTA Agreement came sooner than originally anticipated, and with the Project recently awarded, there is a need to move forward with the execution of the Agreement to appropriate these funds towards the Project without delay.
Staff also recently received an inquiry about extending the paving limits of the Project on Indian Hill Boulevard at the I-10 underpass to include the portions of Indian Hill Boulevard from American to the I-10 and from the I-10 to San Jose Avenue. The timely reallocation of Proposition C funding is allowing staff to accommodate the extended scope of work along Indian Hill Boulevard.
Therefore, staff recommends executing the Agreement with LACMTA and to appropriate these funds for use in the Project to extend the scope of work along Indian Hill Boulevard, from San Jose to American Avenues.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to execute the Fulfillment Agreement with Los Angeles County Metropolitan Transportation Authority for the City to receive $331,086 in Proposition C funds;
B. Appropriate $331,086 in Proposition C funds for use in the Project;
C. Authorize the City Manager to execute a contract amendment with Hardy & Harper Inc., in the amount $331,086, for a total not to exceed $1,425,586; and
D. Find this item is exempt from environmental review under the California Environmental Quality Act (CEQA).
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
On September 9, 2025, City Council authorized the City Manager to award and execute an agreement for the construction of the Project. The lowest responsive and responsible bidder was Hardy & Harper Inc. of Lake Forest, with a bid of $995,000.
Staff has recently received an Agreement from LACMTA for the use of reallocated STP-L funds into Proposition C funds. This information was received by staff after the September 9, 2025 award date for the Project.
Staff recently received an inquiry about extending the paving limits of the Project along Indian Hill Boulevard, outside the I-10 underpass, from San Jose to American Avenues. Staff obtained a quote from Hardy and Harper in the amount of $374,605. The timely reallocation of Proposition C funding is allowing staff to accommodate the request to extend the scope of work along Indian Hill Boulevard. This additional funding will allow staff to amend the Indian Hill Boulevard paving limits from its original area at the I-10 underpass to extend from American Avenue to San Jose Avenue.
Funding for this project is included in the 2024-26 Capital Improvement Program budget.
The following funding sources will be used for this project:
|
Funding Source |
Amount |
|
State Gas Tax - Construction |
$ 995,000 |
|
State Gas Tax - Contingency |
$ 99,500 |
|
State Gas Tax - Construction Management (CM) and Inspection |
$ 84,796 |
|
State Gas Tax - CM and Inspection Contingency 10% |
$ 8,480 |
|
Proposition C - Construction Amendment |
$ 331,086 |
|
Total Project Costs: |
$ 1,518,862 |
The staff cost to prepare this report is estimated at $1,112 and is included in the operating budget of the Community Development Department.
ANALYSIS
On September 9, 2025, City Council authorized the award of the Project to Hardy and Harper Inc. and authorized the City Manager to enter into an agreement with Hardy and Harper Inc. and LAE for the construction, construction management, and inspection work.
The Project scope will provide improvements at three specific locations, selected using the information provided by the most current Pavement Condition Index (PCI) from the City’s Pavement Management System (PMS). The PMS allows staff to develop street maintenance schedules and to select an appropriate method to provide annual roadway maintenance based on the PCI ratings.
The locations designated for the 2-inch grind and pave method have been deemed necessary based on PCI ratings. These areas (First Street from College Avenue to Claremont Boulevard and Indian Hill Boulevard under the I-10 freeway overpass) have low PCI ratings and fit within the project budget.
The selected locations along First Street and Indian Hill Boulevard under the I-10 Freeway overpass have a current average rating of less than 50 due to excessive alligator and block cracking. These asphalt pavement distresses are caused by failure of the surface due to heavy traffic loading (fatigue) and aging caused by shrinking and hardening of the asphalt over time.
Staff recently received a request to extend the roadway maintenance limits along Indian Hill Boulevard, outside the I-10 underpass, from San Jose to American Avenues because these additional portions also have the same low PCI scores.
As a result of the recent LACMTA approval to convert STP-L to Proposition C funds, the City can extend the paving limits for Indian Hill Boulevard. With this additional work, the new paving limits will be from American Avenue to San Jose Avenue.
In addition to the Indian Hill Boulevard segment from San Jose to American Avenues, the First Street segment from College Avenue to Claremont Boulevard presents low PCI ratings because it accommodates a Foothill Transit Hub with high bus volumes, which contributes to higher roadway distresses.
These two locations will receive the following roadway maintenance method:
- 2-inch full-depth grind and conventional asphalt hot mix paving
- Replace all existing street striping
Additionally, the Project includes a new bus stop to be constructed at the request of a resident who requires an American with Disabilities (ADA) accommodation. The scope of work will provide a new Portland cement concrete bus pad and additional space within the public right-of-way to accommodate ADA improvements and to facilitate the placement of bus stop amenities serving all residents, especially those with special needs. Additional amenities, such as a bench and trash and recycling containers will be installed separately by the Community Services Department following construction.
This location was not part of the original Citywide bus stop project that analyzed and considered locations for shelter installations. As a result, the new bus stop will not include a bus shelter. Funding for a new bus shelter at this location may be considered during the development of future budgets
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following: City Council Priorities, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is categorically exempt from environmental review under the California Environmental Quality Act (CEQA). Under CEQA Guidelines section 15301 (“Existing Facilities” - Class 1), Arrow Highway Transit Improvements Project, First Street Rehabilitation Project, and Indian Hill Boulevard at I-10 Freeway Improvements Project, C.I.P 2025-01, C.I.P. 2025-02, & C.I.P. 2025-03 qualifies as “repair” and/or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use.” None of the exceptions in CEQA Guidelines section 15300.2 are applicable here. Notices of Exemption have been filed for all locations of the Project.
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Vincent Ramos
Community Development Director Associate Engineer
Reviewed by:
Maria B. Tipping, P.E.
City Engineer
Attachment:
Fulfillment Agreement for Unprogrammed Surface Transportation Program-Local (STP-L)